In the Heckscher-Ohlin model, when there is international-trade equilibrium
A) the relative price of the capital intensive good in the capital rich country will be the same as that in the capital poor country.
B) the capital rich country will charge less for the capital intensive good than the price paid by the capital poor country for the capital-intensive good.
C) the capital rich country will charge more for the capital intensive good than the price paid by the capital poor country for the capital-intensive good.
D) workers in the capital rich country will earn more than those in the poor country.
E) the workers in the capital rich country will earn less than those in the poor country.
A
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Because the labor supply curve for a monopsonist is upward sloping, the monopsonist
A) hires zero units of labor. B) chooses the perfectly competitive quantity of labor. C) must increase the wage to attract more units of labor. D) must take the wage as given by the market.
The Board of Governors:
A. are appointed by the U.S. president and confirmed by the Senate to 14 year terms. B. Both these are true. C. are experts in banking, finance, and monetary policy. D. Neither of these are true.
When there are diminishing marginal returns to labor, the marginal product of the last worker hired must be negative
Indicate whether the statement is true or false
Which of the following is an example of an activity that generates positive externalities
a. driving a car b. producing clothing c. washing your car d. education e. building a bridge